Uzbekistan Weekly: Uzbekistan tapped for UN-backed peace role, revamps procurement, unveils tax breaks

January 15, 2026 to January 21, 2026

This week's top 10 stories from Uzbekistan, selected from our daily intelligence briefs.

1. US Invites Tashkent to Co‑Found Middle East Peace Council Backed by UN Security Council

The United States formally invited Uzbekistan to join a U.S.-led Middle East Peace Council—announced Sept. 29, 2025 and backed by UN Security Council Resolution 2803 on Nov. 17, 2025—to coordinate political dialogue, humanitarian response, reconstruction and confidence‑building measures in Gaza. President Shavkat Mirziyoyev’s press service said Uzbekistan has agreed to be a founding member; Kazakhstan and Hungary have also confirmed participation, while Russia and others are still reviewing terms. Washington positions the Council as an operational body with measurable outcomes, reportedly requiring founding states to consider contributions up to $1 billion and naming President Donald Trump as chair with authority to validate Council decisions.

For Tashkent, joining the Council leverages its neutral, non‑interference diplomacy and past regional mediation on Afghanistan to raise its international profile and formalize a mediator role in Middle East stabilization. Key outstanding issues for international professionals include the Council’s governance, funding commitments, legal authority for any stabilization forces, and how UN endorsement via Resolution 2803 will interact with member‑state responsibilities and regional actors.

Local Coverage: uza.uz, qalampir.uz, kun.uz, anhor.uz, gazeta.uz

From daily briefs: 2026-01-20, 2026-01-21

2. Presidential Decree Overhauls Public Procurement with New Competitive Tools and Local Content Incentives

Uzbekistan’s president has issued a decree overhauling public procurement to increase transparency, competition and domestic industry participation, with targets to raise competitive tenders to 80%, save an estimated 25 trillion soums, and ensure at least 85% of purchases are locally produced. The reform introduces a “request for quotations” competitive method, local auctions between budget entities and domestic producers, automatic notifications to domestic manufacturers of procurement plans, and an automated module to calculate average market prices to prevent unjustified price hikes.

The decree also permits advance payments to firms that achieve over 30% localization—scaled to their localization level—mandates electronic issuance of acceptance authorizations through the e‑procurement system, shortens expert review timelines by value and complexity, and requires public consultation on all draft procurement documents. For international professionals, the changes signal a move toward more data-driven, protectionist procurement practices that will increase opportunities for local suppliers while requiring foreign firms to adapt to tighter e‑procurement controls and localization incentives.

Local Coverage: uza.uz

From daily brief: 2026-01-16

3. New Tax Breaks Rolled Out for High-Tech, Logistics, Creative and Select Industrial Sectors

President Shavkat Mirziyoyev has signed a law expanding targeted tax incentives to spur investment in high-tech manufacturing, international freight-forwarding, creative industries and select industrial sectors. High‑tech producers approved by presidential list will be exempt from profit tax on sales for three years after a facility begins operations, and the average residual value of related equipment may be deducted from the property‑tax base. International transport‑forwarding services — including receipt, delivery, storage, insurance organization, customs clearance, tracing of undelivered cargo and warehouse storage — will face a zero turnover tax rate.

The package also extends or introduces preferential rates across services and manufacturing: a 1% social tax (through 2027, subject to wage thresholds) for qualifying services, 2% profit tax and 1% social tax (to 2027, with compliance conditions) for textile, footwear and leather producers. Additional measures provide VAT and excise exemptions for certain agricultural inputs and polyethylene granules for pharmaceuticals, tax relief on income from mortgage‑refinancing bonds, and targeted land‑tax concessions. For international investors and logistics operators, the measures reduce operating tax burdens in key export‑oriented and logistics value chains and signal continued state-led industrial prioritization.

Local Coverage: gazeta.uz

From daily brief: 2026-01-15

4. Diplomatic Corps Ordered to Deliver on Exports, Investment and Citizen Protection Following High-Level Review

President Shavkat Mirziyoyev has ordered a structural overhaul of Uzbekistan’s Ministry of Foreign Affairs and overseas missions to make economic outcomes, labor-migration management and citizen services core diplomatic priorities. After a year of expanded engagement that saw Uzbekistan record over $80 billion in trade, $33.5 billion in exports and $43 billion in foreign-investment agreements in 2025, envoys will be evaluated on concrete metrics — export revenue from host countries, tourist arrivals and facilitation of legal labor migration — and embassies will receive an extra $100,000–$200,000 annually. Missions are tasked with diversifying logistics to reach European markets, opening new markets (notably in Africa), mobilizing grants, partnering with top-100 global universities, and pursuing sectoral programs in agriculture, chemicals and textiles.

The president also ordered a refresh of the 2012 Foreign Policy Concept to align diplomacy with shifting global dynamics and long-term national interests across economic, security, transport‑logistics, water and climate agendas; Uzbekistan will chair the Non‑Aligned Movement in 2027–2029 and is eyeing a UN Security Council non-permanent seat for 2035–2036. Mirziyoyev emphasized a shift from “cabinet diplomacy” to proactive, results-driven engagement — including on-the-ground consular protection, streamlined registration, a free call center for urgent cases and stronger legal assistance for migrants — signaling closer oversight, performance benchmarks and a clearer link between domestic reforms and international representation.

Local Coverage: uza.uz, kun.uz, gazeta.uz, qalampir.uz, anhor.uz, uzdaily.uz

From daily briefs: 2026-01-16, 2026-01-17

5. Tashkent and Baku Sign MoU to Coordinate Capital Markets, Insurance, and Crypto Oversight

Uzbekistan’s National Agency for Prospective Projects and the Central Bank of Azerbaijan have signed a memorandum of understanding to cooperate on the development, regulation and supervision of capital markets, insurance and crypto-asset circulation. The MoU establishes a long-term platform for experience and information exchange — including joint seminars, forums, training, online meetings and short study visits — and foresees joint research projects plus sharing of legislation and statistical data to support coordinated oversight.

Priority areas named in the agreement include advancing fintech, improving financial inclusion and operational efficiency, and aligning regulatory approaches for fintech firms while disseminating best practices in emerging financial technologies. For international professionals, the accord signals both countries’ intent to modernize market infrastructure and potentially harmonize standards that could facilitate cross‑border innovation and supervisory convergence in the region.

Local Coverage: uzdaily.uz

From daily brief: 2026-01-21

6. Fiscal Reforms Shift VAT Shares and Expand Local Budget Autonomy from 2026

From 1 January 2026 Uzbekistan will redirect portions of value-added tax and other revenues to strengthen local budgets and tighten fiscal discipline, Sen. Erkin Gadoyev said. Tashkent city will receive 5% of VAT that was previously fully centralized, while regional governments and the Republic of Karakalpakstan will get 20% (excluding large taxpayers). District and city councils gain the power to raise capped fees for alcohol retail licences (excluding beer) by up to 20%, with proceeds retained locally; proceeds from agricultural land leases and taxes collected at dehqon, specialized and goods markets will also be channelled to local budgets for infrastructure.

The reforms allow idle local fund balances to be placed on bank deposit via auction, with interest earmarked for “Obod qishloq,” “Obod mahalla,” and local “Infrastructure and Social Stability” funds. New spending rules prohibit unfunded staffing increases, off‑tender construction financing and the accumulation of arrears, measures intended to enforce budget discipline and improve transparency as municipalities gain greater fiscal autonomy.

Local Coverage: uza.uz

From daily brief: 2026-01-17

7. Cargo Volumes Through Middle Corridor Top 1 Million Tons as Multimodal Push Advances

Uzbekistan reported that cargo volumes transiting the Trans‑Caspian International Transport Route (the “Middle Corridor”) exceeded 1 million tons in 2025, up from 500,000 tons in 2020, as part of a broader push to expand multimodal logistics and diversify away from traditional routes. Traffic on the China–Kyrgyzstan–Uzbekistan corridor surged from 33,700 tons to 1.8 million tons, underscoring rapid modal shift and increased regional connectivity; construction of the China–Kyrgyzstan–Uzbekistan railway is ongoing to strengthen long‑term capacity.

Operational advances include resolution of key organizational issues on the Trans‑Afghan railway, now at the feasibility stage, and the rollout of an E‑permit electronic authorization system with Kyrgyzstan and Azerbaijan to expedite road transport. Uzbekistan also upgraded 24 domestic transport‑logistics centers to international dry port status to streamline customs clearance and expand transit potential—measures that together aim to make Central Asian corridors more competitive for Eurasian trade.

Local Coverage: uzdaily.uz

From daily brief: 2026-01-15

8. Ankara Meetings Set New Defense and Foreign Policy Roadmaps for Turkey–Uzbekistan Ties

Turkey and Uzbekistan reinforced their strategic partnership during high‑level meetings in Ankara, signing multiple defense and foreign‑policy agreements to deepen security, economic and connectivity ties. Defense Ministers Yaşar Güler and Shukhrat Kholmukhammedov signed a 2026 military cooperation implementation plan plus a pact on military medical education and cooperation, while Foreign Ministers Bakhtiyor Saidov and Hakan Fidan co‑chaired the 4th Joint Strategic Planning Group that produced a 2026–2027 Action Plan to expand collaboration in trade, investment, energy security, the defense industry, education and tourism.

Both capitals emphasized transport corridors—namely the Trans‑Caspian Middle Corridor and the Baku–Tbilisi–Kars railway—as priorities for linking Central Asia to global markets and welcomed trilateral progress with Azerbaijan under the Ankara Declaration. Complementary development cooperation was advanced through meetings between Uzbekistan adviser Munira Aminova and TIKA head Esin Acar Ergin, which mapped TIKA priorities through 2026 (education, health care, agriculture, and cultural heritage) and signalled scaled technical assistance to support Uzbekistan’s reform agenda.

Local Coverage: qalampir.uz, uzdaily.uz

From daily briefs: 2026-01-16, 2026-01-21

9. Meloni Holds Brief Tashkent Stopover Talks with Mirziyoyev on Strategic Ties and Regional Issues

Italian Prime Minister Giorgia Meloni made a brief stopover in Tashkent on January 19 while returning from Seoul to meet President Shavkat Mirziyoyev and review bilateral cooperation and regional issues. The leaders highlighted progress since Meloni’s May 2024 visit to Samarkand, where a joint declaration upgraded strategic partnership and multiple agreements were signed, including symbolic gestures such as naming a Samarkand street after Rome. They noted rising trade, expanding industrial cooperation and the planned 2025 opening of a University of Tuscia branch in Samarkand; diplomatic and intergovernmental commission meetings and a second Rectors’ Forum are scheduled for this year.

The encounter — Meloni’s second brief Tashkent stop after July 2024 — underscores Italy’s intent to deepen strategic ties with Uzbekistan and broaden cultural, educational and economic links across Central Asia. Mirziyoyev extended a separate invitation for a full visit, while Rome emphasized the relationship’s strategic character, signaling sustained high-level engagement that could accelerate bilateral projects and regional connectivity initiatives.

Local Coverage: gazeta.uz

From daily brief: 2026-01-20

10. Regulatory Sandbox Opens for Investment Platforms, Enabling Direct Funding for Startups and SMEs

Uzbekistan’s National Agency for Prospective Projects has approved a Regulatory Sandbox for investment platforms effective 13 January 2026 through 1 October 2026 to pilot alternative finance mechanisms that channel funds directly from investors to startups and SMEs without issuing securities or meeting exchange listing and continuous disclosure requirements. The framework — implementing measures from Presidential Decision PQ-255 dated 21 August 2025 — restricts platform operation to resident legal entities that must register in an official registry and comply with AML/CFT, transparency, and investor-protection rules.

Operational requirements include electronic contracting, explicit risk disclosure, conflict-of-interest safeguards, rights accounting, and settlements via escrow or nominal accounts. The sandbox seeks to diversify financing sources, broaden participation by private and nonresident investors, and accelerate digitization of contracting and settlements, while retaining regulatory oversight through registration and mandated compliance.

Local Coverage: norma.uz

From daily brief: 2026-01-17

About This Weekly Digest

The stories above represent the most significant developments from Uzbekistan this week, selected through our AI-powered analysis of hundreds of local news articles.

Stories are drawn from our daily intelligence briefs, which synthesize reporting from Uzbekistan's leading news sources to provide comprehensive situational awareness for international decision-makers.